Industry Contraction

Big on Hosting. Unlimited Space & Unlimited Bandwidth

Looking at the mergers and acquisitions occurring at the moment. EIG in particular and this all looks like the sort of thing that occurs when their is a contraction in the industry.

Their simply is not enough business to go around so some players have to be removed – these end up being gobbled up by the big guys.

The interesting thing is that usually when the merger and acquisition thing becomes noticeable it means we are near a bottom.

What are you guys seeing on the ground? – is there still growth in the number of people buying hosting or are we a long way past the stage of people getting their first web site and in fact lots of people are not renewing.

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